Kolkata, Oct 12 Total corporate funding into the solar sector globally during the July-September quarter rose to about $3 billion in 45 deals, compared to $1.7 billion in 32 deals in April-June period in 2016, a report released on Wednesday said.
According to the report released by consulting firm Mercom Capital Group, the global venture capital funding almost doubled in the quarter under review with $342 million in 16 deals compared to $174 million raised in the same number of deals in the preceding (April-June) quarter.
"Funding levels bounced back across the board compared to a weak Q2 (April-June), but they are still well below last year's totals," said company CEO and Co-Founder Raj Prabhu.
"The combination of slower than expected US demand, the overcapacity situation coming out of China, and global hyper-competitive auctions leading to lower margins has affected the entire supply chain and most of the solar equities are in the red year-to-date," he added.
Solar downstream companies raised $273 million in eight deals while public market financing in the sector in three months which ended September 2016, stood at $880 million in five deals.
"Debt financing came to almost $1.8 billion in 24 deals in Q3 (July-September) 2016 compared to 12 deals in Q2 (April-June) 2016 for $1.3 billion. Year-over-year, $4.1 billion was raised in 22 deals in Q3, 2015," the report said.
Among Indian transactions in the period under review, Mahindra Renewables and its subsidiary Mahindra Susten, a provider of EPC services for solar projects, secured a $31.6 million syndicated loan from Yes Bank and Aditya Birla Finance for its 30 MW Tandur project located in Telangana.
Focal Energy Solar Three, a developer of renewable energy projects, also secured $18.5 million syndicated loan for a 20 MW solar power project in Madhya Pradesh.
Haryana Power Generation Corporation bagged a $8.6 million loan from National Bank for Agriculture and Rural Development (Nabard) under the Rural Infrastructure Development Fund for the construction of a 10 MW solar project at Panipat thermal power station.